Jim Cramer Suggests to “Stay Away” From NIO

NIO Inc. (NYSE:NIO) is one of the stocks highlighted by Jim Cramer in the lightning round. When a caller expressed that they have been contemplating whether to buy more of the stock, Cramer remarked:

“You know, I don’t think that that is a really terrific situation. I happen to think that there are better buys, and I think that market is flooded right now. Let’s stay away from that one.”

Jim Cramer Suggests to "Stay Away" From NIO

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NIO Inc. (NYSE:NIO) develops and sells smart electric SUVs and sedans, along with a full ecosystem of charging, battery-swapping, insurance, financing, and after-sales services. During an October 2024 episode, when a caller inquired about the company stock, Cramer replied, “I want you to hold on.” Since the comment was made, the stock has declined nearly 33.5%.

On August 1, NIO Inc.’s (NYSE:NIO) stock was upgraded to Outperform from Neutral with a $5.50 price target by Macquarie, as the firm stated that it sees the company’s newly launched L90 as the company’s most competitive model to date. According to Macquarie, the L90 offers stronger value than Li Auto’s recent i8 and is a six-seat large SUV positioned near the price of Tesla’s five-seat Model Y. The firm projects monthly sales of 8,000 to 12,000 units for the L90.

While we acknowledge the risk and potential of NIO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NIO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.